The United States is home to over 20 million rental properties. Most investors realize just how advantageous owning a piece of rental real estate can be. If you are the proud owner of one or more rental properties, finding ways to make this investment easier to manage should be a top concern. As a landlord, you will be confronted with a number of tenant management issues.
Late rent payments are perhaps the most common problem landlords across the United States face. Allowing these issues to persist can cause big headaches and profit losses in the future. Making rent receival and payment processing easier will require both hard work and the use of modern technology. Read below for some great tips on how to avoid late rent payments.
Allow Tenants To Make Rent Payments Online
There are a few basic mistakes that can make late rent payments a near certainty. Some landlords fail to realize just how important digital rent payments are to their overall success. If a tenant has to write a check and mail it to a landlord, the chances of this payment being late increases. If you are serious about avoiding late rent payments, then you have to work on offering online rent payments for your tenants.
The main thing you need to facilitate online payments is a functional website and the help of a reputable only payment facilitator. Providing tenants with a safe and accessible website where they can make rent payments is also a great way to lower turnover rates. If your rental properties are in pristine shape and you have online rent payment options, you should have no problem keeping tenants loyal and happy.
Thoroughly Screen Potential Tenants
If you are passionate about eliminating late rent payments, then you need to be selective about who you rent your properties to. A thorough screening process is crucial when trying to find the best possible tenants. During this tenant screening process, you need to check a person’s income and their credit history.
With this information, you can assess whether a person has a history of late payments to creditors. Knowing a potential tenant’s income information is crucial when trying to figure out if they can actually afford the rent prices in question. If you don’t have the time or tools to perform these tenant screenings, then hiring a property management company to assist is a good idea.
Communicate With Your Tenants
One of the worst things a rental property owner can do is assume their tenants know rent payment dates and the late fees associated with these late payments. Rather than wondering if tenants know this important information, you need to make sure they do.
As a new tenant is signing their rental agreement, you need to go over rental due dates and late fees. Getting the tenant to sign a paper that states they know your rent guidelines will allow you to avoid problems in the future.
By following the tips mentioned above, you can drastically reduce the number of late rent payments you receive.